Re: Sweden's biomass market

[FMurrl@aol.com]

In a message dated 4/23/02 3:17:19 PM Eastern Daylight Time, anouk@shaw.ca writes:


> "There has also been a knowledge development on measuring, writing up
> contracts and other transaction cost decreasing activities, even though it's
> very often on a company basis. This knowledge is crucial if international
> trade should be possible, that you have ways of determining just what you're
> dealing with and how to measure it, the traditional volume measures are very
> inadequate for these issues."


Anouk:

Here is my two cents worth on this issue:

In energy generally we have found "standard contracts" or "standardized contracts" to greatly enable business between counterparties. [Very true about natural gas contracts; becoming more true regarding coal in certain situations; critically important in futures/derivitives trading in energy.] This is true whether the sale is domestic or international. This enables us to be sure we are communicating accurately with others on issues, including quality evaluation, quantity evaluation, transportation issues (risk of loss), etc. 

The more we have gone to standardized contracts in some areas of our business, the faster we have been able to conclude specific pieces of business. 

I hasten to add that I know too little at this time about biomass to even venture a guess as to the importance of standardized contracts in this area, but the comments from Folke indicate that this must be important in biomass, as well as for other energy commodities. 

Regards,
Fred Murrell
Biomass Development
Bradenton Florida USA